It would be hard to argue that exercising Keon Ellis’ team option was a good decision by the Sacramento Kings. Ellis has become one of the league’s best perimeter defenders while also shooting 43% from three-point range.
That kind of player just doesn’t come around all that often, and it seemed like a given that the Kings would extend him after the type of season he just had. NBA cap expert, Keith Smith, had some notes on Keon in his most recent work for Spotrac.com and this is what a Sacramento Front Office Executive had to say about a possible extension.
“That’s the goal. We had a lot of discussion on the best way to handle things with Keon and the option we had for him. Ultimately, it’s a show of trust that we picked up his option, instead of making him a restricted free agent. That helped us add some talent this year, that we might not have been able to get otherwise.”
I finished emptying out my Summer League notebook with some notes from personnel around the NBA on the NBA Draft, NBA expansion and then notes from all 30 Western Conference teams.
— Keith Smith (@KeithSmithNBA) July 22, 2025
Read more on @spotrac:https://t.co/nQS2cqm2ip
For fans, this may be slightly frustrating to hear because it doesn’t seem like the team was just one piece away from competing with the best teams in the league. It may not have seemed necessary to go sign Dennis Schroder instead of prioritizing Ellis’ extension, but it clearly shows the team is interested in at least trying to compete. It isn’t worth going into the merit of this from Sacramento, but it does sound like Ellis is a priority now.
“Now, we hope to get something done that keeps Keon in Sacramento, because he’s a really good player and different from all of our other guards.”
There is also something to picking up Ellis’ team option as a “show of trust” from Sacramento. If the Kings and Ellis don’t come to an agreement, Ellis will become an unrestricted free agent at the end of the season.
In this case, Sacramento wouldn’t have the benefit of being able to match any offer for Ellis and could even run into a situation where a team frees up cap space to give him a big deal. Because of this, Sacramento has a lot of incentive to extend Ellis before he hits free agency, and I don’t believe they intend to lose one of their better young players for nothing.
For Ellis, this is actually a win-win. Restricted free agency has been incredibly dry with players like Cam Thomas, Jonathan Kuminga, Quentin Grimes, and Josh Giddy still without new deals.
Most of the reason for this is that there are so few teams with the cap space required to present an offer sheet, so it’s likely Keon would have the same fate. For Ellis, he can either sign a long-term deal in Sacramento or test free agency next summer when more teams project to have space.
Here’s a 6 minute video featuring just some of Keon Ellis’s defensive highlights as a member of the Sacramento Kings…
— E Train Talks Sports (@ETrainSports) July 2, 2025
If these clips don’t prove to you that he’s an incredible defender, then you just don’t know ball. https://t.co/1ZnBeqFKiZ pic.twitter.com/tIPvJx1X07
All of this points to Sacramento eventually getting an extension done for Ellis, but it is also important to note that this current front office didn’t inherit the best cap situation. Sacramento has historically not been a team that will spend into the luxury tax threshold, so having Domantas Sabonis, Zach LaVine, and DeMar DeRozan making a combined $115 million isn’t ideal.
Given that the Kings are not going to pay any luxury tax, the previous front office left a pretty low ceiling for Scott Perry and BJ Armstrong’s team. Luckily for Sacramento, they do have some flexibility for next year, which bodes well for them keeping Ellis beyond this year.
The problem with all of this is that forcing Ellis to play another year on a deal that he’s clearly outplayed could cause a rift between him and the team. Ellis is making less than pretty much everyone on the roster, including rookie Nique Clifford.
As good as Clifford is, that just isn’t fair to Ellis. There aren’t many avenues for the Kings to get enough space to extend Ellis and stay under the tax line, so let’s hope that both parties are on the same page. Per league rules, Ellis can be extended at any time, so this will be something to track, possibly into the regular season.
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